President of the Senate Dominick Roger all-in tax cuts for businesses.
In a talk at the Northern Rhode Island Chamber of Commerce happening today if you open the Rhode Map the moment it pops into your inbox (and you should), Ruggerio revealed his plan to make the first $100,000 tangible personal property owned by businesses that are exempt from taxation.
If you think tangible property, think Hasbro computers or the Twin Oaks frialator. Cities and towns assess and collect property taxes, so Ruggerio’s proposal is to pay municipalities $36.6 million annually (similar to how the state currently issues taxes of car tax).
“The tangible tax is more than a financial burden; it’s also an administrative headache, especially for small businesses,” Ruggerio said in his prepared remarks. “It’s complicated to follow, and some small businesses need to hire an accountant to navigate the requirements.”
Ruggerio estimates that 85 percent of Rhode Island businesses will no longer pay any tangible taxes, and all businesses will see some form of tax relief. The Rhode Island Public Expenditure Council is one of the groups advocating for these cuts.
The bigger picture: There are roughly three months left in the legislative session, but top priorities in the Senate and House are more clearly in focus. Ruggerio wants to cut taxes, House Speaker Joseph Shekarchi wants his housing package, and everyone wants to be in Congress.
governor Dan McKee hasn’t played his hand too well, though he won’t fight Ruggerio or Shekarchi because of their big plans. He’s facing mounting pressure from rising costs for various economic development projects right now, and we’re also waiting on his big 100-day plan for matching Rhode schools Island in Massachusetts test scores in 2030.
This story first appeared on Rhode Map, our free newsletter about Rhode Island that also has information about local events, links to interesting stories, and more. If you prefer to receive it by e-mail Monday through Friday, you can sign up here.
Dan McGowan can be reached at dan.mcgowan@globe.com. Follow him on Twitter at @danmcgowan.
